Curacao first to license Ethereum smart contract casino

The casino works off the Ethereum blockchain using smart contracts

Ramy Caspi
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According to multiple reports, the government of Curacao has issued a gambling license to an online casino known as  Edgeless, which is the first time that a blockchain based casino has received a license to operate gambling services in any recognized jurisdiction.

The casino works off the Ethereum blockchain using smart contracts. In a nutshell that means that the actual gaming software is written into the blockchain, rather than simply using a blockchain such as Bitcoin’s as a medium of currency exchange.

According to a December 22 announcement the casino will be open for registration on January 8, and a new Edgeless version launch is scheduled for January 18, 2017.

License details:

• Issue date: 2017–12–22

• Jurisdiction: Curacao

• License number: 8048/JAZ2017–076

Edgeless 0.2 version launch

Registration for Edgeless starts on January 8th, 2018 (since Edgeless has become legally compliant, user registration will require KYC and verification to prevent kids from gambling).

Moreover, the new Edgeless version launch is happening on January 18th.

Key features of version 0.2:

• Increased betting limits

• New player registration and verification

• Enabled deposits and withdrawals of real EDG

• Shapeshift integration allowing players to deposit EDG using other cryptocurrencies

Thomas Draksas, the founder of Edgeless, said in a statement: “The license of Curaçao is a good starting point that allows us to compete with traditional online casinos, however, we have not finished yet. The field of cryptography and gaming is evolving very fast, including legal aspects. Our legal team will work to acquire more licenses in the near future and strengthen Edgeless's legal base. "

Unlike traditional casinos, with Edgeless, the decentralized application of Ethereum casino, users have control over their assets, without the intervention of any intermediary. The license will allow the casino to grow and establish international relationships with banks, exchanges and service providers.

The casino is not just using cryptocurrencies for payment methods. Instead, the whole software, including games, is written into blockchain technology. While similar casinos do exist, none of them owns a license from a trusted regulatory body.

The name “Edgeless” refers to the fact that the casino has no house edge or built-in advantage over gamblers.

Edgeless is also a cryptocurrency, similar to Bitcoin. Each bet would be tendered in EDG coin. Co-founder Tomas Draksas announced on Sept 28 that Edgeless 0.1 was available in two versions on a main net Ethereum blockchain.

Players will be able to deposit and withdraw in the company’s coins and will also be able to deposit using other cryptocurrencies in what they are calling “shapeshift integration”. The company doesn’t seem to speak of utilizing technology advanced enough for a full-scale decentralized exchange such as EtherDelta, so it is unclear precisely how transactions will ultimately be processed.

A decentralized casino, is an exchange or an asset trading platform which can offer a level of privacy and security that centralized platforms can not offer, by allowing users to have full control over their funds.

This is a major milestone in the commercialization of cryptocurrencies, and casinos – however it is not a jurisdiction with much regulatory credence. Curacao provides no player protection. Their main concern is in KYC (know your customer) and AML/CFT (anti-money laundering/combat financing terrorism) compliance. And that, in itself makes the Edgeless sublicense a historical event.